Consult with experts before investing in life insurance

People who are in the market for life insurance have a variety of sources of information to consider, both online and in the financial world at large.

For example, Carla Fried, wrote in a recent column for CBS Money Watch that when it comes to retirement preparations, a 30-10-4 formula is a good way to go. In other words, she suggests that people should plan to live on average for 30 years after their retirement date, while saving 10 percent of their pre-tax income for retirement while they're still working.

The "4" she speaks of is considered the percentage of one's retirement savings that can be considered to be safe to withdraw in any single year. For "extra credit," Fried went on to advise people that they can increase their Social Security earnings by 8 percent if they wait until age 70 to retire, and she notes that a typical long-term inflation rate of 4 percent could halve the purchasing power of one's retirement savings over the course of 20 years.

Elsewhere, Scott Webb of the Webb Financial Group recently wrote a column for the Coshocton Tribune in Ohio suggesting that life insurance premiums should be sufficient to cover one's total debt and mortgage payments.

Webb also suggests that people with children should carry $50,000 in additional coverage per child to help cover their future education expenses if needed.